In 2012, I made an IRA contribution of $6,000. I deducted the IRA from my 2011 taxes. In 2012, I received notification from the IRS that I owed taxes on the $6,000 because I also had a 401K. I amended my 2011 taxes and paid the taxes on the $6,000 to both Federal and to state. I did not remove the $6,000 from the IRA (I didn't know to do so). As I paid tax on the contribution, do I have excess contributions?
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No ... it was not an excess contribution... it was a non deductible contribution which is added to any other basis you have in the IRA if any. When you take distributions from the IRA this basis amount will come into play so you don't pay taxes on the same amount twice.
No ... it was not an excess contribution... it was a non deductible contribution which is added to any other basis you have in the IRA if any. When you take distributions from the IRA this basis amount will come into play so you don't pay taxes on the same amount twice.
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